On 19 January 2009, the UK Government unveiled a second comprehensive bank bailout
plan. This followed the failure of its October bailout package to stimulate domestic
lending, as intended. The various components of the new "rescue package" are duly
explained and analysed in this article, which also addresses the likely future course of
policy should the Government fail in its latest ambitions to stimulate lending and thereby
revive the flagging economy.

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This working paper is also available at: http://ideas.repec.org/p/lbo/lbowps/2009_01.html